Amazon Ads Budget Optimization

Here's how we added $1.2 million USD in additional annual revenue to a customer's account.

This seller hails from the UK, so these numbers will be in pounds (£).

We had set an account-wide daily ad spend budget of:

​£300

​(about $400 USD)​

As you should! This prevents the ad spend from going out of control. If it's uncapped, Amazon can spend as much as it wants. Not always advisable.

But, we had a problem:​​

The spend was running out by 6pm local time, so we were losing sales to competitors from 6pm to midnight every day. The budget would then reset and midnight and we'd start spending again.

Now, we COULD have just increased the budget universally (e.g. from ​£300 to ​£350).

But that would increase spend too much, in some cases. There are always some campaigns with a bad ROAS. We'd also be spending more there, too.

So instead what we did was ONLY run ads/new budget on select campaigns (above a certain ROAS) from 6pm to midnight. This crushed it, allowed for profitable growth, and we're on track to generate an additional $1.2m annually from this one change.

(As you can see from the ad spend vs. revenue, we have a high pricepoint and high conversion rates)​​

If we hadn't made this change, that revenue would not exist.

Well actually, it would have existed... just in competitor's pockets instead!

With enough scale, Amazon Ads budget management can buy you a house ;)